Exercise 24-3 Your answer is incorrect. Try again. Hillsong Inc. manufactures snowsuits. Hillsong is considering purchasing a new sewing machine at a cost af $2.45 million. Its existing machine was purchased five years ago at a price of $1.8 million; six months ago Hils ng spent $55,000 to keep it operational. The existing sewing machine can be sold today for $240,438. The new sewing machine would require ? one-time, $85,000 training cost Operating costs would decrease by the following amounts for years 1 to 7: Year 1 $390,900 2 399,800 3 410,100 4 425,400 5 434,000 6 434,900 7 436,400 The new sewing machine would be depreciated according to the decining-balance method at ? rate of 209. The salvage value is expected to be $379,100. This new equipment would require maintenance costs of $94,000 at the end of the fifth year. The cost of capital is 9%. Use the net present value method to determine the fallowing: (If net present value is negative then enter with negative sign preceding the number e.g.-45 or parentheses e.g. (45). Round present value answer to 0 decimal places, e.g. 125. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Calculate the net present value. Net present value Determine whether Hillsong should purchase the new machine to replace the existing machine